1.You must be using an approved lender that has been trained to use the program or your reservation will not be accepted. You must have a fully negotiated purchase agreement in order to reserve funds.

2.Buyer does NOT need to be a first time buyer, but cannot own any other real estate at the time of closing.

3.Property must be in a target neighborhood. Much of Dakota County is eligible.

4.Maximum sales price is $256,080.

5.Maximum income limits apply. This refers to HOUSEHOLD income, including any adults living in the home, even if not a purchaser or borrower.

1 Person limit $67,950                                       5 Person Limit $104,850

2 Person limit $77,650                                       6 Person Limit $112,600

3 Person limit $87,350                                       7 Person Limit $120,400

4 Person limit $97,100                                       8 Person Limit $128,150

6. Property must be owner occupied

7. Property must be a FORECLOSURE property. No short sales or pre-foreclosures.

8. The assistance is as follows: Up to a $15,000 zero interest, no monthly payment loan. This is NOT a grant or gift program. The loan is paid back when the primary mortgage is paid off, when the home is no longer the primary residence, or when the home is sold or refinanced. No subordination will be granted if primary loan is refinanced. When the property is sold, if proceeds from the sale are not enough to cover full repayment of the loan assistance, the recaptured amount will not exceed the net proceeds. There is expected to be $500,000 available, which should help 33-40 homebuyers.

9. The borrower must provide 50% of the minimum down payment required by the loan program. For example, if using an FHA loan, the normal down payment is 3.5% of the sales price, so the buyer would have to provide a minimum of 1.75% of the sales price as down payment before the assistance loan would be given.

10.The maximum sales price is limited to 85% of an appraisal that would be done by the Dakota County CDA (not the appraisal done for the actual mortgage). The CDA appraiser will attempt to appraise the home based on “non-foreclosure” comparables. Water, electric and gas (if applicable) MUST be on for this appraisal to be done). If the appraisal does not come in high enough, the buyer would have to re-negotiate the sales price with the seller OR skip the Silver Lining Funds. Therefore, if the buyer needs this assistance in order to purchase the home, proper contingencies must be placed in the purchase agreement.

11.The property must pass a safety and health inspection from the CDA. This means that the property MUST have appliances (including a working stove and refrigerator), working smoke alarms, no broken or cracked windows, intact window screens, functioning door locks, no deteriorating paint, etc. Again, all utilities must be on for this inspection and this inspection is NOT a substitute for a standard buyer’s home inspection.

12. Buyer must attend an approved Home Stretch first time buyer class in order to use this program.